Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The trust satisfies the requirements in this subsection in relation to the income year if:
(a) one or more entities covered by subsection 275 - 20(4) have a total * MIT participation interest in the trust of more than 25% at the time the payment mentioned in paragraph 275 - 10(3)(a) is made; and
(b) at no time in the income year does an entity (other than an entity covered by subsection 275 - 20(4)) have a MIT participation interest in the trust of more than 60%.
(2) For the purposes of paragraphs (1)(a) and (b):
(a) if:
(i) an entity covered by subsection 275 - 20(4) has a * MIT participation interest (the first interest ) in the trust; and
(ii) another entity covered by subsection 275 - 20(4) also has a MIT participation interest (the second interest ) in the trust;
disregard the second interest to the extent that it arises through the existence of the first interest; and
(b) if an entity that is not a trust has a MIT participation interest in the trust because it holds interests in the trust indirectly, through a * chain of trusts--do not treat a trust in the chain of trusts as having a MIT participation interest in the trust.
(3) For the purposes of paragraph (2)(b), treat an entity covered by subsection 275 - 20(4) as an entity that is not a trust.
(4) For the purposes of paragraphs (1)(a) and (b), apply the rules in subsection 275 - 20(7).